Section 5. Definition of Terms. - For purposes of this Act, the following terms or words and phrases shall mean or be understood as follows:

1. Approved Budget for the Contract (ABC) refers to the budget for the contract duly approved by the Head of the Procuring Entity, as provided for in the General Appropriations Act or other authorized source of funds, in the case of National Government Agencies (NGAs); the corporate budget for the contract approved by the governing Boards, pursuant to Executive Order (E.O.) No. 518, series of 1979, in the case of GOCCs, GFIs, and Republic Act No. 8292, or the "Higher Education Modernization Act of 1997", in the case of SUCs; and the budget for the contract approved by the Sanggunian through an appropriations ordinance in the case of LGUs;

2. Beneficial Owner refers to a natural person who: (1) ultimately owns or dominantly influences the management or policies of the juridical entity;

3. Bidrefers to a signed offer or proposal submitted by a supplier, manufacturer, distributor, contractor, consultant, and service provider in response to the bidding documents;

4. Bidder refers to a supplier, manufacturer, distributor, contractor, consultant, and service provider who submits a bid in response to the requirements of the bidding documents;

5. Bidding Documents refer to documents issued by the Procuring Entity as the basis for Bids, furnishing all information necessary for a prospective bidder to prepare a Bid for the Goods, Infrastructure Projects, and Consulting Services to be provided.

6. Bids and Awards Committee (BAC) refers to the Committee established in accordance with Article V of this Act;

7. Blacklisting refers to an administrative penalty imposed by the Head of the Procuring Entity which prohibits a person or an entity including its affiliates from participating in all government procurement activities;

8. Common-Use Supplies and Equipment (CSE) refer to goods, materials, and equipment that are used respectively in the day-to-day operations of Procuring Entities in the performance of their functions which are included in the electronic catalogue of the Philippine Government Electronic Procurement System (PhilGEPS);

9. Consulting Services refer to services for Infrastructure Projects and other types of projects or activities of the government requiring adequate external technical and professional expertise that are beyond the capability and/or capacity of the government to undertake such as, but not limited to: (1) advisory and review services; (2) pre-investment or feasibility studies; (3) design; (4) construction supervision; (5) management and related services; and (6) other technical services or special studies;

10. End-User or Implementing Unit refers to the employee or organic office within the organization of the Procuring Entity that identifies, plans, prepares, designs, and implements the procurement project based on the requirements or needs of the agency in accordance with its mandate;

11. Financial Eligibility refers to having the financial capacity to manufacture, distribute, or deliver the Goods, Infrastructure Projects, and Consulting Services being procured;

12. Goods refers to all items, supplies, materials, and general support services, except Consulting Services and Infrastructure Projects, which may be needed in the transaction of public businesses or in the pursuit of any government undertaking, project or activity, whether in the nature of equipment, furniture, stationery, materials, for construction, or personal property of any kind, including non-personal or contractual services such as the repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services, as well as procurement of materials and supplies provided by the Procuring Entity for such services;

13. GPPB refers to the Government Procurement Policy Board established in accordance with Article XIX of this Act;

14. Head of the Procuring Entity (HoPE) refers to: (1) the head of the agency or the duly authorized official, for NGAs; (2) the governing board or its duly authorized official for GOCCs, SUCs, and GFIs; or (3) the local chief executive, for LGUs: Provided, That in a department, bureau, office, or agency where the procurement is decentralized, the Head of each decentralized unit shall be considered as the HoPE subject to the limitations and authority delegated by the head of the department, bureau, office or agency;

15. Infrastructure Projects include the construction, improvement, rehabilitation, demolition, repair, restoration, or maintenance of roads and bridges, railways, airports, seaports, communication facilities, civil works components of information technology projects, irrigation, flood control and drainage, water supply, sewerage and solid waste management systems, shore protection, energy/power and electrification facilities, national buildings, school buildings, hospital buildings, and other related construction projects of the government;

16. Jury Duty refers to a responsibility in which the BAC, Technical Working Group (TWG), and Secretariat members, including end-users, give utmost priority to procurement assignments over all the other duties and responsibilities until the requirements for the procurement at hand are completed;

17. Legal Eligibility refers to having the legal capacity to act as an entity as evidenced by permits, licenses, and/or registrations required by law to engage in the business of manufacturing, distributing, or delivering the Goods, Infrastructure Projects, and Consulting Services being procured;

18. Lifecycle Cost refers to the total cost of ownership over the entire life span of an asset from its acquisition, operation, maintenance, and disposal;

19. Multi-Year Contractual Authority (MYCA) refers to the authority given to the Procuring Entity to procure multi-year projects in accordance with the form and conditions set by the Department of Budget and Management (DBM);

20. Philippine Government Electronic Procurement System (PhilGEPS)refers to the single electronic procurement portal managed by the Procurement Service (PS-DBM) as provided in Section 20 of this Act;

21. Philippine Product and Services refer to local goods, articles, materials, supplies, services, and intangible products which may be:

    1. unmanufactured goods, articles, materials, or supplies wholly obtained or produced in the Philippines;

    2. any good, article, materials, and supplies produced, manufactured, or assembled in the Philippines which has a minimum local contact as may be determined by the Department of Trade and Industry (DTI);

    3. services, which refer to the delivery of value or intangible acts or uses through high-level skills, expertise, labor, or some form of knowledge, technology, or process-intensive activities; or

    4. intangible products, which refer to properties without physical existence including, but not limited to, computer, software and products of the creative industry;

22. Portal refers to a website that aggregate a wide variety of content for the purpose of attracting a large number of users;

23. Procurement refers to the acquisition of Goods and Consulting Services, and the contracting for Infrastructure Projects by the Procuring Entity. Procurement shall also include the lease of goods and real property. With respect to real property, its procurement shall be governed by the provisions of Republic Act No. 10792, or "The Right-of-Way Act", and other applicable laws, rules and regulations;

24. Procuring Entity refers to any branch, department, bureau, office, agency, or instrumentality of the government, including SUCs, GOCCs, GFIs, and LGUs procuring Goods, Infrastructure Projects, and Consulting Services;

25. Technical Eligibility refers to having the experience or expertise to undertake the services, manufacturing, distribution, or delivery of the Goods, Infrastructure Projects, and Consulting Services being procured; and

26. Value for Money refers to the optimum combination of quality and cost to meet the requirements and objectives of the end-user.